KATHMANDU, Dec 22: Nepal Rastra Bank (NRB) is going to mop an additional Rs 60 billion from the banking system for liquidity management.
As the economy of the country is not on the right track, industrialists and entrepreneurs are not eager to invest in new projects. As there is no demand for money in the market, money has been accumulated in the banks.
NRB to mop additional Rs 40 billion from banking system for liq...
After deposits accumulated in banks, the NRB is going to mop Rs 60 billion from the banking system on Sunday. According to the NRB, it is going to collect Rs 60 billion for 21 days through deposit collection equipment.
The notice issued by the NRB mentioned that while the banks and financial institutions seeking deposit collection should bid for an amount completely divisible by a minimum of Rs 100 million and a maximum of Rs 50 million. The bidding system will be conducted online. The 21-day deposit collection instrument will pay principal and interest on January 12.
Only 'A', 'B' and 'C' category banks and financial institutions will be allowed to participate in the deposit collection instrument. In the bidding of deposit collection, the amount to be deposited as deposit and the interest should be mentioned up to 4 digits in the case of 9 decimal places.
According to the NRB, when distributing the funds allocated for the collection of deposits, priority will be given to the lowest interest rates, and the funds will be allocated progressively until the total requested amount is reached.
